At the same time, Moody’s has changed the Bank’s outlook from stable to negative on long-term deposits and senior preferred debt, following the revision of Romania’s sovereign rating outlook.
As per Moody’s press release, the affirmation of RBRO’s ba1 BCA reflects the bank’s strong capital buffers and sound profitability. Moody’s assessment also incorporates the bank’s large liquidity buffers, its predominantly deposit-based funding profile but also the significant portion of foreign- currency deposits which elevate funding risks. The ba1 BCA further captures the high concentration in its loan book stemming from its large corporate exposure as well as its high exposure to riskier unsecured consumer loans.
“The affirmation of RBRO’s Baa1 long-term deposit ratings, Baa1 senior unsecured bond rating and Baa2 junior senior unsecured rating reflect the affirmation of the bank’s baa3 Adjusted BCA which continues to benefit from one notch of uplift from our assumption of a high likelihood of support from its Austrian parent, Raiffeisen Bank International AG (A1 stable/A1 stable, BCA baa3); and the application of our Advanced LGF analysis that result in three notches of rating uplift for the bank’s deposit and senior unsecured debt ratings and one notch of uplift for the junior senior unsecured debt. However, we constrain the bank’s deposit and senior unsecured debt ratings at Baa1, two notches above the sovereign rating,” the press release also reads.
Raiffeisen Bank Romania ended 2024 with net profit of RON1.67 billion, slightly lower than the RON1.72 billion result reported for 2023. The increase in revenue and maintaining a favorable risk profile remain the strong points of Raiffeisen Bank, which continues to invest in developing and improving its products and services in Romania.